The European cannabis industry may conquer the market

After controlling North America, the cannabis industry aims to also conquer the European cannabis industry, especially the United Kingdom. The country is looking to change the image of cannabis in spite of ethical debates and strict regulations. Many companies have been trying to promote products containing cannabidiol (CBD), which is a non-psychoactive compound, unlike THC.

In November 2018, the United Kingdom legalized medical cannabis use, following the controversy caused by the case of two British children with epilepsy who had been unable to bring their cannabis-based treatment into the country. This marks a milestone for the European cannabis industry.

Read the latest marijuana news and information with our marijuana news application, where we bring you the latest cannabis resources, medical marijuana studies, legalization updates, and other compelling cannabis content.

Large revenues for the European cannabis industry

“At the moment, the legal cannabis market in Europe, where medical use is authorized in most EU countries, is valued at around $1 billion,” explained Nikolaas Faes, an analyst at the investment bank Bryan Garnier who organized the event.

In comparison, the U.S. legal market represents between $12 billion and $13 billion.

“The European cannabis industry is a very small market, particularly because of the diversity of legal frameworks. Policy-makers are not fully ready yet, but progress is being made,” said Faes.

In his opinion, legalization could bring large
revenues, because the total market in Europe, including illegal trafficking, is
estimated at $55 billion.

Cannabis for medical purposes

The leaders of the sector rely on North America’s example. Canada legalized cannabis last year together with the United States.

However, only 11 states legalized its recreational use while Federal law still considers cannabis to be a hard drug.

In Latin America, seven countries authorized
cannabis for medical purposes, and Uruguay was a pioneer in legalizing
recreational cannabis use.

In the U.K., the centrist Liberal Democrat Party is proposing legalization in its program for the legislative elections on Dec. 12. According to a poll published in July by YouGov, almost half of Brits (48%) are in favor.

In North America and Europe, the number of countries that legalize cannabis is growing. (Source)

However, the debate remained open and the British public health system is constantly pointing out harmful effects of the recreational use of cannabis. The reason is that it may increase the risk of developing mental illnesses such as schizophrenia.

Although doctors can now prescribe cannabis-based drugs, it is very difficult for patients to obtain them because of the lack of available treatments. This is an obstacle for the European cannabis industry.

CBD’s popularity in the European cannabis industry

“You should understand that a legal market does not mean an open market. There are legal markets in the U.K. but the country has less than 200 patients,” said Stephen Murphy, head of Noble, a cannabis research firm.

Beyond the medical field, a multitude of companies tried to take advantage of fashionable CBD-based products using non-psychoactive cannabis.

CBD is attributed to relaxing and anti-inflammatory
effects and is sold in the form of extracts or oils in a market that has no
clear rules.

“This causes problems because people don’t know
what is legal or not,” confirmed Farzad Moshfeghi, CEO of Winchester MD, a
British company that sells CBD products.

The European cannabis industry’s potential

On the other hand, emerging companies in Europe find it difficult to get funding. This is a far cry from some North American companies already listed on the stock exchange.

Despite these issues, professionals believe in the potential of the European market, although they still have to wait a few years.

“Europe will become the world’s largest market
in ten years’ time. The demand is there,” Murphy said confidently.

DISCLAIMER: This article was written by a third party contributor and
does not reflect the opinion of Hemp.im, its management, staff or its
associates. Please review our disclaimer for more information.

This article may include
forward-looking statements. These forward-looking statements generally are
identified by the words “believe,” “project,” “estimate,” “become,” “plan,”
“will,” and similar expressions. These forward-looking statements involve known
and unknown risks as well as uncertainties, including those discussed in the
following cautionary statements and elsewhere in this article and on this site.
Although the Company may believe that its expectations are based on reasonable
assumptions, the actual results that the Company may achieve may differ
materially from any forward-looking statements, which reflect the opinions of
the management of the Company only as of the date hereof. Additionally, please
make sure to read these important disclosures.

First published in Gestion, a third-party contributor translated and
adapted the article from the original. In case of discrepancy, the original
will prevail.

Although we made reasonable efforts to provide accurate translations,
some parts may be incorrect. Hemp.im assumes no responsibility for errors,
omissions or ambiguities in the translations provided on this website. Any
person or entity relying on translated content does so at their own risk.
Hemp.im is not responsible for losses caused by such reliance on the accuracy
or reliability of translated information. If you wish to report an error or
inaccuracy in the translation, we encourage you to contact us.

Michael Jermaine Cards is a business executive and a financial journalist, with a focus on IT, innovation and transportation, as well as crypto and AI. He writes about robotics, automation, deep learning, multimodal transit, among others. He updates his readers on the latest market developments, tech and CBD stocks, and even the commodities industry. He does management consulting parallel to his writing, and has been based in Singapore for the past 15 years.

Comments are closed for this post.

Download Hemp.im

Get the latest Hempnews delivered staright to your pocket with Hemp.im!

Download Hemp.im App

Get the latest Hemp news delivered straight to your pocket with Hemp.im!

Stay in touch with us

HEMP.IM uses cookies in order to improve your experience and make further customizations to how we present our content. By continuing to use our website, you accept and give your consent to our practices as described in the following: our revised Privacy Policy, Cookie Policy, and Terms of Use.I CONSENT